Steel Ministry to push for higher import duty

Steel Ministry is likely to push for higher customs duty to protect domestic steel industry against cheap imports amid global slump in demand and prices.

"Steel industry has been demanding higher import duty. We will meet the steel manufacturers soon and depending on the situation push for more levy. We will have a second look of the duty structure," Minister of State for Steel Jitin Prasada told PTI.

Advocating more protection for the industry by way of higher taxes, the minister said the government move to levy a five per cent customs duty on steel items, besides restricting their imports, will provide a cushion to the sector.

"The government has to take a call on economy. There are different dimensions to their decisions. It (customs duty) is, nevertheless, a welcome move," he added.

In addition to pushing for higher import tax, Prasada said the ministry will also demand 14 per cent countervailing duty on TMT bars and structurals to make imports competitive.

"We will again take up the matter seeking imposition of countervailing duty as asked for the steel industry," he said.

Countervailing duty is equivalent to the excise paid by domestic manufacturers. Its imposition is expected to benefit leading steel producers like SAIL, RINL, Tata Steel, JSW and Ispat by making the import of the commodity dearer.

Earlier this month, the government had imposed a five per cent customs duty on steel imports besides restricting arrivals of various steel items to protect Indian industry against cheaper arrivals reportedly being dumped in the country.

Steel firms, in order to stay afloat, amid the melting global economic scenario, had recently slashed output and prices of the metal by up to 20-30 per cent.